With a residential leasehold premises in Poringland, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are less than eighty years remaining. Anyone in Poringland with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current Act the freeholder can calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you better control over the value of your Poringland leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the freeholder of her studio flat in Poringland, Bethany initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work was concluded in May 2009. The landlord’s costs were kept to an absolute minimum.
In 2013 we were called by Dr D André who, having moved into a one bedroom apartment in Poringland in June 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Similar flats in Poringland with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 collected monthly. The lease ended on 28 July 2086. Taking into account 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 exclusive of costs.
In 2012 we were approached by Mr and Mrs. W Davies who, having was assigned a lease of a studio flat in Poringland in April 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Identical properties in Poringland with 100 year plus lease were worth £255,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2097. Given that there were 71 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.